Alaska compares to no other state, right? Still, how else can we understand the “right size” for Alaska’s government? Alaska is the size of four Montanas or six Wyomings. One person per square mile lives here. Wyoming is home to six, and Montana, to seven people per square mile. Alaska spends about $20,000 per person, Wyoming about $15,000, and Montana about $10,000. Politically, all three states favor small government and minimal taxes. Why is Alaska’s budget so much greater than these relatively similar states?
Alaska is the only state lacking roads to all communities. Flying a lawmaker from Utquiagvik to Juneau costs $400. The most far-flung Wyoming lawmaker spends $60 in gas to get to Cheyenne. Wyoming and Montana are connected directly by road to the rest of the Lower 48. Alaska must pay much more in transportation to get fuel and materials to the state.
So, the costs of basic health, safety, education and court services for Alaska’s scattered residents is heavily compounded by transportation costs.
Alaska has, by far, the highest health care costs in the world. This alone causes constitutionally mandated basic services to be more expensive.
Finally, Alaska is the only state that divides up a portion of state revenue and gives it directly to the residents. Subtract a $1,500 Permanent Fund dividend from Alaska’s per-capita spending, and the spread to Wyoming’s and Montana’s spending shrinks. These two states have population densities six to seven times greater than Alaska’s, are crisscrossed by roads, have zero coastline, have weather that rarely precludes travel, have no earthquakes and have average health care costs.
In summary, Alaska experiences unique challenges that result in a significantly higher cost for delivering basic services to people statewide. I believe the Legislature assembled a budget that provides these services and helps to ensure Alaska remains an inviting place for residents and businesses.
Gov. Mike Dunleavy’s vetoes cut far into basic services. To balance the budget sustainably, new revenue must be incorporated.
— Jennifer Huvar
Anchorage
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